In light of this fact, it is best if the firm adjusts its hurdle rate (i.e., cost of capital) upward to compensate for this fact.
<h3>What is hurdle rate?</h3>
A hurdle rate is known to be the lowest rate of return that is needed on a project or any kind of investment.
Note that Some projects do take an undoubtedly result in zero and as such, In light of this fact, it is best if the firm adjusts its hurdle rate (i.e., cost of capital) upward to compensate for this fact.
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